The Reserve Bank of India (RBI) has introduced a special dollar window to support three major public sector oil marketing companies (OMCs) amid a weakening rupee. The measure aims to meet the daily dollar needs of Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd, and Bharat Petroleum Corporation Ltd, as geopolitical tensions and global economic uncertainty continue to impact the rupee. The rupee closed at 96.71 against the US dollar on Friday. The special facility will take effect from October 12, 2026, and remain in place until further notice.
In addition to the special dollar window, the RBI has implemented several regulatory measures to strengthen the foreign exchange market. These include restricting the rebooking of cancelled foreign exchange derivative contracts involving the rupee and reducing the threshold for undertaking such transactions without establishing underlying exposure. The threshold has been lowered from $100 million to $5 million across all authorised dealers.
The RBI has also introduced a Foreign Exchange Risk Reserve (FERR) for certain rupee-linked foreign exchange derivative contracts. Authorised dealers will be required to maintain a cash reserve equal to 20% of the INR equivalent of the notional amount of each transaction. The FERR requirement applies to contracts with a notional value exceeding $2 million.